Understanding and Leading Change in Organisations - A Case Study of Cadbury
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This report analyses the impact of change on Cadbury's strategy and operations, evaluates the drivers of change, and determines how barriers to change influence leadership decision-making. It also discusses the intended change in the organisation.
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Understanding and leading change
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Table of Contents INTRODUCTION..........................................................................................................................3 TASK...............................................................................................................................................3 LO1 Compare ways in which change impacts on an organisation’s strategy and operations.3 LO2 Evaluate the influences that drivers of change have on organisational behaviour........4 Change drivers that effected the effected the strategy and operation of the organisation......5 LO3 Determine how barriers to change influence leadership decision-making....................9 Change drivers that effects leadership, team and individual behaviours...............................9 L04 (1) Discuss the intended change in the organisation.....................................................11 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................15
INTRODUCTION Changes in the organisation's is a long and ongoing process. Companies tend to change various techniques and methods that effect their operations and strategies. These changes can be their technological changes, social or employee change, legal or internal policy changes, etc (Mackey and et.al., 2018). This report summarises the performance of major confectionery brand Cadburywhich is a UK Based brand established in 2010 and fully owned byMondelez International. Company produces various chocolates, baked products such as cookies and cakes and sells beverages like milkshakes, as well as various other products. This report includes the types of organisational changes that have affected their operational and strategical processes. Further, this report will include the various discussion on the topicchanges and its impacts, change drivers, barriers of change and different leadership approaches for change management. TASK LO1 Compare ways in which change impacts on an organisation’s strategy and operations. Cadbury and Nestle are major confectionery brands in the world. In order to have a good brand image in the world, both the companies have changed their technologies in order to produce better product and to attract customers. The changes are presented in the tabular format here:- ParticularsCadburyNestle Technological ChangesCadburyisusing3D technology as a new method of manufacturing chocolates. One of the main benefit of using this technology is to rapidly produceabrand-newdesign without any expensive capital investment(Min,Johnson and Ziedonis, 2019). Nestle also has made changes in its technologies and started usinginnovativetoolslike artificial intelligence, machine learning,advanceddata analytics,blockchain,etc.in ordertoprovideabetter customerexperience.Italso developedacentralizeddata warehousewithMicrosoft PowerBIandAzureto
developareliabledata analyticsandbusiness intelligence platform. Strategical changesAfteradoptingnewchanges companyneedtochangeits strategicpoliciesaswell. Companyhirednew employeeshavinggood commandoverthe3rd technology as well as trained existing ones also for the same (AvitiaCarlos,Rodríguez Tapia, and Candolfi Arballo, 2020). As,nestleadoptednew techniques,thisledintoa drastic strategical changes into the company. Since beginning companyisproducing chocolates and products in a traditional way. After adopting newtechniques,theold machinesbecameobsolete. Plus, the on the job training hastobeprovidedto employees so as to adopt new technology. Operational ChangesCadburychangeditsdayto daybusinessactivitiesafter adopting new technology. This includesvariousprocesses, activities,marketingpolicies, allocatingfundstonew technology, etc. Nestleadoptedvariousnew technologies.Thisledto changesinthedaytoday operationalactivities.As companyadoptedtechniques like Power BI and Azure, it became easy for the company to analyse the data regarding variousprocessesand activities. LO2 Evaluate the influences that drivers of change have on organisational behaviour.
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After adopting new technologies, companies came across major changes. Some of them are internal and external. Change drivers that effected the effected the strategy and operation of the organisation It is been identified that there are two types of drivers which are discussed below and that effects individual, team and leadership behaviours. In context of the Cadbury, change drivers can be described under the following:- Internal drivers: Resources:-Varioustypes of resources such as Workforce , Finance, Raw material, etc. are necessary for smooth running of any business organisation. In context of the Cadbury it is been identified that company timely provides the important resources and this has directly impacted the performance in a positive way(Sa’ari, 2019). Finance:-Finance is the most important requirement for the business organisation to conduct the various activities. In context of the Cadbury it is analysed that sufficient funds are always required as it is manufacturing chocolates, sweet candies, etc. at a large scale. As in case of the shortage of the availability of the fund the company cannot perform its functions. Capabilities:-Capabilities refers to strengths or capacities of the employees to work. Every employee have its own strengths and weaknesses. Company allocates work going through the strength and weaknesses of the employees. As , if the work over limits the capacity, it will create stress to the employees. Resulting employees will not work efficiently and it can lead to failure in accomplishing goals. External drivers: Government:-It is been observed that the changes in the rules and regulations of the government policies affects the whole business organisation. Cadbury needs to follow the guideline which is imposed by the government in order to avoid the risk of the penalties . If the company is not able to abide to the certain laws then it de-motivates the employees to work within the organisation(Kjeldsen and Van der Voet, 2021). Competition:-Competition is rigorous across the globe irrespective of any any industry. And it is important for any company to concentrate on the strategies of its competitors.In context of the Cadbury it is been analysed that there is high impact of the competitors in the
market which are offering the same products and at same prices. So, it is necessary for the company to implement changes and to innovate the products in order to attract market. Customers:-The customers are the person who consumes the product or service of the organisation. They are the king for the marketers because the market is totally dependent on the consumers(Adin, 2021). In context of the Cadbury it is important for the company to take care of the rapid changes taking places in the market. The leaders need to apply the leadership style in order to make the employees work according to the dynamic changes in the environment to satisfy the demands of the customers. ChangeInternal/externalImpact on leadership behaviour Impacton team/ departmental behaviour Impact on individual behaviour Measuresto minimise negative impacts Resources (Internal) Changes in the resources impacted the leadership. Managemen t have to change its strategies and planning. Team-mates willbe more careful regarding theworkif resources are lessin quantity.As company haveto providebest ofits productin limited resources. Resources directly impactat individual level.Asif there will be sufficient resourcesin the company, employees willwork stressfree andwill give best of theirresults andvice versa. Tominimise negative impacts, company have to ensure that there arealways sufficient availableinthe company.Asin caseofany otherwise, would impact the whole company. Finance (Internal) Finance is core of every business. No business can run without sufficient funds. Therefore, availability of funds At team/depart mentlevel, resources means sufficient timeto every project. Unrealistic deadlines Financeat individual levelrefers tosalaries andwages. Ifsalaries andwages are provided timely to the employees, they will be Company always needtoensure thatcompanyis havingsufficient funds with it. As everyprocessin thecompany dependsupon fundssuchas procurementsof rawmaterials,
directly impact in formulation of policies, and for future planning. andtargets wouldlead to satisfied and willwork satisfactorily paymentof salariesand wagesto employees, etc. Capabilities (Internal) Company needs to analyse strengths and weaknesses of every individual. As every individual is different and work must be allocated going through the capacities of the employees. Teamor department is formed of employees only.Ifa teamhave peoplewith fullof energyand enthusiasm, itwillbe easier for the companyas well as team tocomplete theassigned project timely. Every individual's capabilities isdifferent. Allocating workmore thanthe capabilities canleadto morestress. Thiscan resultinto business failures. Tominimise negative impacts, workmustbe assignedasper theneedof projectsalong withthe capacitiesof team-mates. Government (External) Govt. timely changes its policies and rules& regulations. This impact majorly on leadership. As company have to follow various policies, rules and regulations, etc. Failure of which can lead to legal actions. As such changes in Ifthereare changesat the leadership roles, definitelyit willimpact at departmental /team behaviour. Asproduct isprocessed via departments. Andany changesat leadership roleswill directly impactthe Every individual haveto work according to guidelines setbythe leaders.As leaderswill change guidelines, it will directly impactthe productivity of employees. Tominimise negative impacts, company have to followthe guidelines set by the Govt. as well asdevelop product accordingly.
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the taxation policy, import- export duties, etc. product development . Competition (External) Competition is again a major factor leading changes at a large scale. As market is full of companies, providing same product and services at more or less same prices too. This brings competition among the players and majorly impact the leadership roles. Leadership roleswill directly impactat team/ department level too. In the competitive market, company have to offer bestof the productsin orderto sustainin the market. In competitive market, employees have to pay competitive salariesand wages. Otherwise, employees willnot work effectively andmay also be hired by rivals. Tominimise negativeimpacts inthe competitive market, company needs to analyse thedemandand supplyofthe market.As producthaveto develop accordingly, otherwise it may looseagainstits competitors. Consumers/ Customers (External) As everyone knows that anything the company is offering is directly/indi rectly going to be consumed by customers only. Therefore, leaders have to study the demand as well tastes./ Leaders will provide suggestions and guidelines to the departments &teams regarding thevarious processesof product. Thiscan changein working styleofthe team. Consumers willnot directly impactthe individual behaviour. Butmay changeas perthe leadership andteam behaviour. Tominimise negative impacts, company have to study the market conditions, consumer demands, taste & preferences,etc. asnocompany can be run going againstthe demandof consumers.
preferences of the consumers, any plan products accordingly. LO3 Determine how barriers to change influence leadership decision-making. Force field theory states about the two forces that are always opposite in nature and in every organisation(Tombetti and Mason, 2019). These two forces refers to driving and restraining forces. Whenever they are in equilibrium, they organisation maintain the status quo. Driving forces refers to the constructive, economic, and optimistic elements that are interested in causing change. On the contrary Restraining forces are the negative factors that push down the objects and limits the progress. The elements which get affected via these forces are basically people, habits, customs, attitudes, etc. The companyCadburyis a renowned brand known for its chocolates, sweet candies,etc. It needs to promote its products at a large scale. The real change that are introduced by the company are listed below:- Providingmonetarybenefits:-Companyprovidesvariousincentives,increments, bonuses ,etc. in order to motivate them to work effectively and accomplish company's goal. Theses monetary benefits encourages employees to work effectively, harder and to achieve goals in a specified deadlines. Non- monetary benefits:-Timely promotions, various prizes, awarding employees for excellent work. These non-monetary elements matter a lot for employees and thus employees works satisfactorily(Rekha, 2020). Employees usually resist to work due to unsupportive management, communication gap between employees and management, unrealistic deadlines, and lack of confidence, etc. Change drivers that effects leadership, team and individual behaviours. It is been identified that there are two types of drivers which are discussed below and that effects individual, team and leadership behaviours. In context of the Cadbury, change drivers can be described under the following:- Internal drivers:
Resources:-Varioustypes of resources such as Workforce , Finance, Raw material, etc. are necessary for smooth running of any business organisation. In context of the Cadbury it is been identified that company timely provides the important resources and this has directly impacted the performance in a positive way. Finance:-Finance is the most important requirement for the business organisation to conduct the various activities. In context of the Cadbury it is analysed that sufficient funds are always required as it is manufacturing chocolates, sweet candies, etc. at a large scale. As in case of the shortage of the availability of the fund the company cannot perform its functions(Arnold, 2019). External drivers: Government:-It is been observed that the changes in the rules and regulations of the government policies affects the whole business organisation. Cadbury needs to follow the guideline which is imposed by the government in order to avoid the risk of the penalties . If the company is not able to abide to the certain laws then it de-motivates the employees to work within the organisation. Competition:-Competition is rigorous across the globe irrespective of any any industry. And it is important for any company to concentrate on the strategies of its competitors.In context of the Cadbury it is been analysed that there is high impact of the competitors in the market which are offering the same products and at same prices. So, it is necessary for the company to implement changes and to innovate the products in order to attract market. Customers:-The customers are the person who consumes the product or service of the organisation. They are the king for the marketers because the market is totally dependent on the consumers. In context of the Cadbury it is important for the company to take care of the rapid changes taking places in the market. The leaders need to apply the leadership style in order to make the employees work according to the dynamic changes in the environment to satisfy the demands of the customers. Various ways by which the company reduced the resisting forces/barriers:- Best of the trainings:- Company provides best of the trainings to its employees starting from the joining itself, alongside on job trainings too. This enables employees to work in a right direction(Grother and Coventry, 2018).
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Calibre tasks:-Every employee is different in terms of strengths and weaknesses. Company well understands the calibre of each and every employee, so allocates work accordingly.Thisbooststheconfidenceamongtheemployeesandeliminates unnecessary stress. Communication Gap:-Communication refers to inferiority among the employees or when employees fear to communicate with the superiors regarding issues. Company conductsvariousmeetings,parties,activities,etc.inordertohaveeffective communication. This eliminates the communication gap and thus employees work satisfactorily (Chandra Handa, M., 2019). Discuss how the organisation can achieve their objectives as the barriers are reduced and the change is implemented. The foremost objective of any organisation is to maximise profits. As company have changed its working pattern and minimised the barriers. Therefore, the employees can work efficiently without any hurdle. Changes in the organisations are very beneficial in order to have progress, to compete in the market and hence, to accomplish organisational goals. As the company Cadbury, have introduced new system for motivating employees. This will encourage employees to work harder, and that too in right direction. L04 (1) Discuss the intended change in the organisation. The expected changes in the company are mentioned below:- Change in the working style:-Working style of the employees starting from executives to leaders will be changed. It totally depends upon the various factors such as market demand, product planning and development and competition, etc. theses elements keeps on changing and majorly impacted the working style of Cadbury. Product Development:-Company have to develop the product according to the desires of the consumers. As market is full of brands and everyone is providing best of their products. This makes the product development a tough task for the company Cadbury. Change at the leadership roles :-Leadership roles refers to the strategies and planning for running a business. Leadership roles were expected to be change in the Cadbury, as market situation keeps on changing(Emam, M. M. and Gaad, 2018).
(2)Discuss the drivers(reasons) for this change and discuss how this change will help the company. The changes occurred due to the various reasons:- Technological Changes:-Technological changes impacted majorly every aspect of the company. Starting from the production to the Supply chain. The company Cadbury have to implement new technologies in order to produce quality products and to sustain it as a well known brand (Modiba and Stewart, 2018). Promotional Techniques:-Companies use best of the technologies to promote and sell their products. Starting from the newspapers to the social media, everything requires technology. Therefore, to attract customers and sustain in the market Cadbury adopted 3D technology as a new method of manufacturing chocolates and this way company captured the market. (3) Discuss which model you intend to implement the change successful and how the model will help. The Burke- Litwin model showed various drivers of change and implemented the change successful. It believes that environmental factors are the most important driver for change. Important elements of organisational success, such as mission and strategy, leadership and organisational culture, are often impacted by changes that originate outside the organisation. External Environment:-This includes such factors as markets, legislation, competition and the economy. All of these elements have consequences for Cadbury and, as a change, it was vital to continually scan the environment for issues that can affect the company. Leadership:-This considers the attitudes and behaviour of senior officials and how these behaviours are accepted by the entire company. The way in which change is implemented affects the whole company. Work Unit Climate:-This considers employees’ perception of their colleagues and working environment. Cadbury's working environment is quite positive, and this enables employees to work efficiently(Schaller, 2022) (4) Discuss how the change will be implemented using the model (e.g Letwin’s model). Type of ChangeCurrentimpactonthe company Desired impact EnvironmentImpactedhugeontheCompanystudiedthe
(External Change)workingstyle,product policy. external factors. The desired impactthecompany observedischangesin attitudeoftheemployees towards the output. Leadership (Internal Change) The attitude of the seniors towards the subordinates is quite liberal. Thisimpactedthework culture positively. Work Unit Climate (Internal Change) Colleagues'perceptionsof one another became warmer and less of an unnecessary tension. Employeesfeelmuch satisfied in their jobs.
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CONCLUSION The above report concludes that the leading changes that occur in the business organisation are very necessary for the growth and development of any organisation. Changes are required to sustain and compete in the market. These changes affect the operational and strategical processes of any organisation. In context of the companyCadbury,which is a renowned confectionery brands in the world had bring some changes. These changes are really very beneficial in order to have better environment in the company so as to enhance the productivity of the employees. Another aspect is to provide better products in the market in order to have good market size.
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Modiba, M. and Stewart, S., 2018. Changing teaching practice in South African schools: An examinationofteacherdevelopmentinitiatives.InLeadingChangeinTeacher Education(pp. 146-160). Routledge.